New York State Life Insurance Exam Questions Practice Question
A life settlement provider MUST perform which of the following actions in a life settlement transaction?
Correct Answer: D
Rationale: In a life settlement transaction, compliance with HIPAA and other privacy laws is essential to protect the insured's sensitive information, ensuring their rights are upheld.
Option A is incorrect; life settlement providers cannot disclose the insured's medical records to the policyowner without consent, as this violates privacy regulations.
Option B is misleading; while tax implications exist, it is not the provider's responsibility to supply tax forms to the insured.
Option C is inaccurate; although consent retention is important, the duration specified may not align with legal requirements, making it less critical than adhering to privacy laws.
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